Global Atlantic Financial is said to cater to over two million policyholders with its retirement and life insurance products

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Global Atlantic Financial to be acquired by KKR. (Credit: Pete Linforth from Pixabay)

Global Atlantic Financial Group, a US retirement and life insurance company, has agreed to be acquired by private equity firm KKR & Co., for about $4.4bn.

The company is said to cater to over two million policyholders with its retirement and life insurance products.

Global Atlantic Financial is claimed to be among the largest fixed rate and fixed indexed annuity providers in the US.

The company offers annuities for individuals via a network of banks, insurance agencies, and broker-dealers. Apart from that, it offers life insurance for individuals and corporates.

The insurer is also said to be a prominent player in the institutional channel, offering tailored reinsurance solutions to its life and annuity company clients.

Global Atlantic Financial was originally founded as Goldman Sachs Reinsurance Group (GSRG) in 2004. In 2013, it separated from Goldman Sachs and was renamed to the present name.

Global Atlantic Financial CEO comments on the acquisition by KKR

Global Atlantic Financial chairman and CEO Allan Levine said: “We are thrilled to have a new, long-term partner in KKR. With its global presence, investment acumen and long-term focus, we believe we will be even better positioned – financially and strategically – both to help Americans address the financial challenges they face today and to help our institutional channel clients achieve their strategic, risk, and capital management goals.”

KKR said that it expects Global Atlantic Financial’s policyholders to benefit from its asset management and origination capabilities. The private equity firm also intends to serve as Global Atlantic Financial’s investment manager subject to regulatory approvals.

Besides the acquisition of Global Atlantic Financial marks a significant and natural extension of its existing insurance business, said KKR. The private equity firm’s insurance business is said to manage $26bn of assets on behalf of insurance firms across its strategies and products.

Following the closing of the deal, the retirement and life insurance company will continue to operate as a separate business with its existing brands. It will also retain its existing senior leadership team headed by Allan Levine.

KKR co-chairmen and co-CEOs Henry Kravis and George Roberts said: “Global Atlantic is a best-in-class business with a like-minded entrepreneurial management team. Our businesses are complementary and our partnership will benefit all of our collective stakeholders.”

The deal, which is likely to be closed in early 2021, is subject to applicable regulatory approvals and meeting of some other customary closing conditions.